Chip stocks rebound to lift the Nasdaq and S&P500

The S&P 500 and the Nasdaq Composite rose Monday lifted by a rebound in chip stocks and tech names.

The broad market index added 0.57 per cent, closing at 4,489.72. The tech-heavy Nasdaq gained 1.05 per cent, ending the day at 13,788.33. Meanwhile, the Dow Jones Industrial Average advanced by 26.23 points, or 0.07 per cent, to end at 35,307.63.

Nvidia closed 7.1 per cent higher, marking a turnaround for the chip giant after it sold off 8.5 per cent last week. Shares got a boost after Morgan Stanley reiterated Nvidia as a top pick ahead of earnings.

Chip stocks across the board also jumped, with the VanEck Semiconductor ETF (SMH) up 3 per cent – though it is still down more than 6 per cent in August.
Mastercard agreed to take a minority stake in the financial-technology business of MTN Group Ltd, Africa’s biggest wireless carrier, sending the telecom company’s stock up the most in three months.

Anticipating the upcoming week, we may find the trajectory of this week shaped by revelations about the condition of the US consumer, as earnings announcements are expected from Home Depot, Target, and Walmart. Additionally, retail sales data for July is scheduled for release on Tuesday morning.

The earnings reports are coming after a mixed batch of inflation reports last week, which show that price increased have eased from their post-pandemic peak but are still above the Federal Reserve's 2 per cent target.

In commodity-related news, Syrah Resources (ASX:SYR), the biggest graphite producer outside China, aims to restart its African mine as Chinese graphite inventory drops, expecting increased demand later in the year due to reduced Chinese supply. China’s production is largely seasonal and its summer production tends to finish by November, the CEO said in an interview.

Turning to US sectors, Tech was the best performer, following the rebound from chip stocks, whilst Utilities was the worst performer.

Futures

The SPI futures are pointing to a flat start.

Currency

One Australian dollar at 7:20 AM was buying 64.86 US cents.

Commodities

Gold shed 0.13 per cent. Silver fell 0.15 per cent. Copper added 0.17 per cent. Oil lost 0.82 per cent.

Figures around the globe

European markets closed mixed. London’s FTSE fell 0.23 per cent, Frankfurt added 0.46 per cent, and Paris closed 0.12 per cent higher.

Turning to Asian markets, Tokyo’s Nikkei lost 1.27 per cent, Hong Kong’s Hang Seng fell 1.58 per cent while China’s Shanghai Composite closed 0.34 per cent lower.

The Australian sharemarket closed 0.86 per cent lower at 7277.

Ex-dividends

Advanced Share (ASX:ASW) is paying 0.5 cents fully franked
Flagship Investments (ASX:FSI) is paying 4.9 cents fully franked
QV Equities (ASX:QVE) is paying 1.3 cents fully franked

Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.

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